The product liability law of the United Arab Emirates is still relatively new. It was first introduced in 2006 as Federal Law No. 24/2006. This law has been superseded by a more comprehensive legal regime in 2020, the Federal Law No. 15/2020, as amended by Federal Decree-Law No. 5/2023 (“Consumer Protection Law”).[1] The existing legal framework was further developed through the Cabinet Decision No. 66/2023 (“Executive Regulation”).[2]
The Consumer Protection Law establishes an extensive framework governing advertising, labeling, invoicing, warranty obligations, and fair competition standards, which have been examined in numerous publications to date. This summary focuses on a less commonly analyzed element: product liability and recall protocols.
Scope of Protection
The scope of protection under the Consumer Protection Law is very broad. The law applies to all ‘goods‘ located and ‘services’ provided in the UAE (mainland and offshore). This includes goods and services carried out via e-commerce by a provider registered in the UAE. The law also applies to the related ‘operations’ carried out by the supplier, its commercial agent, or the authorized advertiser.[3]
The Consumer Protection Law defines ‘goods’ as any products (including those of natural, agricultural, and intellectual origin), product components, and raw materials.[4] ‘Services’ are defined as “(a)nything provided to the Consumer, whether with or without consideration.”[5]
The personal scope of the Consumer Protection Law is equally broad. It applies to both natural and legal persons who obtained the good or service to satisfy their “personal needs or the needs of others,” whether purchased by them or received for free.[6]
Liable entities
The Consumer Protection Law makes suppliers liable for the products, i.e. goods and services.
‘Supplier of services’ is the legal person providing them. For ‘supplier of goods’, the list of liable parties includes entities manufacturing, distributing, trading, selling, supplying, exporting, importing, or otherwise interfering with the goods’ manufacturing, trading, or storage with the intention of providing or selling the goods to consumers.[7]
Commercial agents could be liable if the services or goods were “provided through” them.[8]
Obligations of liable entities
The Consumer Protection Law imposes the obligation to ensure the conformity of goods and services with the mandatory standard specifications accredited by the Emirates Authority for Standardization and Metrology and “conditions and controls related to health and safety and legislation in force in the relevant country.”[9]
Suppliers are further obliged to deliver goods and services free of malfunctions and defects.[10] The Consumer Protection Law defines a ‘malfunction’ as “everything that affects the Good after its production or the Service after its provision.”[11] A ‘defect’ is defined as a “lack of quality, quantity, or efficiency, or a difference in the external shape, size, or components of a Good or Service resulting from an error in its design, manufacture, production, or provision to the Consumer.” In both cases, the effect of a defect or malfunction must be such that they“may lead to harm or deprive [the consumer], in whole or in part, of benefiting [from the Good/Service].”The law further requires that the defect or malfunction was not caused by “the action of the [c]onsumer.”[12]
Liability
In the event of a malfunction or defect, the supplier is obligated to repair or replace the good, or refund its price, or re-perform the service without charge.[13]
Moreover, the Consumer Protection Law gives consumers the right to claim damages for personal and material losses sustained by them “as a result of using the Good or Service” in accordance with statutory provisions in force in the UAE.[14] This right is excluded if the incurred damages result from “the product’s misuse or use contrary to the method of use.”[15]
No limitation of liability
The suppliers’ liability under the Consumer Protection Law is strict. The law prohibits any derogation from its provisions that would be detrimental to consumers.[16]
Product recall procedure
A supplier’s recall duty arises upon discovery of a “[d]efect or danger in the [g]ood or [s]ervice that would harm the [c]onsumer when using it or benefiting therefrom.”[17] The Executive Regulation extends this obligation to defects in a good “affect[ing] the efficiency or efficacy thereof.”[18] In such circumstances, the supplier is obliged to:
- cease to trade the affected goods or provide the affected services,[19]
- immediately recall the affected goods from the market,[20] and
- run a recall action by repairing or replacing the good, or refunding its price, or re-performing the service.[21]
Moreover, the supplier is obligated to make the following notifications.
First, the supplier or its legal representative shall immediately “upon the discovery of defect” in a good notify the Ministry of Economy or the competent local authority in the concerned emirate of potential damages and prevention measures.[22] The notification must include the following details.
- Reporting person: Name, capacity, surname, nationality, address, and domicile in the UAE. If the notification is made by the supplier’s legal representative, the authenticated power of attorney must be enclosed with the notification.
- Supplier: Name, address, and country of origin.
- Affected goods: Description of the affected goods.
- Defect: The technical determination of the defect, including the date of its discovery.
- Risk: Description of the damage that may be caused by the reported defect, the means of protection against it, and ways of rectification, in case the damage materializes.
- Procedure: Description of the procedures that a consumer should follow to replace, repair, or return the affected good.[23]
Second, the supplier or its legal representative are also obligated to notify the affected consumer immediately upon discovery of a defect in a good.[24] The competent body must be involved in the consumer notification process. It may set notification periods, deadlines, and additional notification requirements.[25] The Executive Regulation mandates notification in at least two local daily newspapers, one of which must be in Arabic. Within 24 hours after discovering the defect, the supplier must also publish an announcement on its websites and social media channels, or those of the authority. The advertisements must be at least 15cm x 15cm, clearly formulated, legible, and include the following information.
- Supplier: Name, address, email address, and contact number of the supplier.
- Affected goods: Name, trademark, model or batch number, country of origin, description of the affected goods, and a clear photograph thereof.
- Defect: Description of the defect and number of affected goods.
- Risk: Instructions to consumers on how to avoid damage that may be caused by the defect.
- Procedure: Description of the procedures that a consumer should follow to replace, repair, or return the affected good.[26]
Third, the supplier needs to inform the competent body within 30 days “from the commencement of return” about the recall procedures taken, detailing the quantity of the repaired, replaced, or refunded goods and their owners, and listing affected owners who could not be reached.[27] The return file can be only closed with the permission of the competent authority.[28]
Violations of suppliers’ recall obligations may result in administrative fines ranging from AED 250,000 to AED 1,000,000.[29]
Conclusion
Businesses are advised to implement compliant processes to meet statutory obligations. This article offers a general overview and does not address all legal duties. Please contact us for detailed advice on your liability exposure under the Consumer Protection Law or for information on product recall procedures.
[1] Federal Law No. 15/2020 (as amended by Federal Decree-Law No. 5/2023) on Consumer Protection. This article is based on the English translation prepared by Sader Legal Publishing, available on Lexis Middle East.
[2] Cabinet Decision No. 66/2023 concerning the Executive Regulation of the Federal Law No. 15/2020. This article is based on the English translation prepared by Sader Legal Publishing, available on Lexis Middle East.
[3] Art. 3 of the Consumer Protection Law.
[4] Art. 1 of the Consumer Protection Law, definition ‘Good’.
[5] Art. 1 of the Consumer Protection Law, definition ‘Service’.
[6] Art. 1 of the Consumer Protection Law, definition ‘Consumer’.
[7] Art. 1 of the Consumer Protection Law, definition ‘Supplier’.
[8] Art. 16(3) of the Consumer Protection Law.
[9] Art. 20 of the Consumer Protection Law; Art. 1 of the Consumer Protection Law, definition ‘Standard Specifications’.
[10] Art. 10(1) and (2) of the Consumer Protection Law; Art. 1 of the Consumer Protection Law, definition ‘Warranty’.
[11] Art. 1 of the Consumer Protection Law, definition ‘Malfunction’.
[12] Art. 1 of the Consumer Protection Law, definition ‘Defect’.
[13] Art. 12 of the Consumer Protection Law; Art. 20(1)(c) of the Executive Regulation.
[14] Art. 24(1) of the Consumer Protection Law.
[15] Art. 24(2) of the Consumer Protection Law.
[16] Art. 21 and 24(1) of the Consumer Protection Law.
[17] Art. 11 of the Consumer Protection Law.
[18] Art. 20 of the Executive Regulation.
[19] Art. 20(1)(a) of the Executive Regulation.
[20] Art. 11 of the Consumer Protection Law; Art. 20(1)(b) of the Executive Regulation.
[21] Art. 20(1)(c) of the Executive Regulation; Art. 12 of the Consumer Protection Law.
[22] Art. 11 of the Consumer Protection Law; Art. 20(1) of the Executive Regulation.
[23] Art. 21(1) of the Executive Regulation.
[24] Art. 20(1) of the Executive Regulation.
[25] Art. 22(2) of the Executive Regulation.
[26] Art. 22(1)(d) of the Executive Regulation.
[27] Art. 20(3) and Art. 24(1) of the Executive Regulation.
[28] Art. 24(2) of the Executive Regulation.
[29] Addendum 2 to the Executive Regulation, items Nos. 27-29.
